With two billion people on Facebook there is no question that your target market is on there. The only question is if you can afford to reach them profitably and convert enough impressions/ clicks to customers on your website.
Below are some strategies to get the best possible ROAS.
Facebooks algorithm favours content that users interact with.
If you can create content that users interact with (likes, comments, shares) and use larger audiences (above 1 million) then you’re going to have much better results in terms of ROAS (return on adspend)
Facebook needs advertisers to generate money but it also needs to keep users engaged with content.
Creating and using engaging content to not just generate revenue on your website, but also to engage your audience you will see much better ROAS as your quality score will increase.
Remember, Facebook like Google is an auction and you are competing with someone else. Facebook is always going to choose the advertiser whos ads has:
- Best engagement (likes, comments, shares)
- Lowest negative feedback
- Lowest bounce rate on your landing page
- Highest ROAS
- Watch percentage
Getting good metrics here is ultimately going to determine your CPMs and how profitable Facebook ads are going to be for your business.
Your job is two-fold:
- Create content that is highly engaging with your audiences.
- Find audiences that engage highly with your content.
The bulk of ROAS for our clients comes from lookalike audiences.
Tips for using lookalike audiences:
- Give Facebook good data – You want to be using CTV and have as many customers as you can.
- Create large audiences – Have your audiences as big as you can. Give Facebooks AI room to work. Over 1 million is good.
- Test new content all the time – Content gets old fast on Facebook. You want to test as many different ads as possible. Use Perry Marshall’s swiss army knife for ideas.
- Video is king – You’re mainly going to want to use videos. About 80% of the revenue will come from them and Facebook heavily prefers videos. It’s also worth having a still image and a carrasel in your ad groups in the bids where those formats are prefered. Though, this depends on your placement settings.
- Play with different bids – Facebook is an auction and how much you are willing to pay will determine the quality of traffic you get. Always bid for conversions and test different bidding strategies. Also, play with your bid. Sometimes bidding higher than you’d like pays off.
- Budget – If you’re using a bid cap, try timing your budget by 5. Depending on your bid cap you’ll likely only spend 20% of it and it can pay off big time.
You also want to make sure you have some reach. If you see -10 on the left, try upping your bid cap or switching bid strategies. Otherwise, you’re adgroup will only get a handful of impressions per day.
If you’re interested out sourcing your Facebook campaigns, take a look at our offer here.
We also create highly engaging content in our inhouse studio here.